A bill introduced by Fresno Democrat Joaquin Arambula seeks to expand homeownership opportunities for undocumented immigrants in California. The proposal, which has garnered attention as the election season heats up, is designed to make home loans more accessible to immigrants who are taxpayers but may face obstacles due to their legal status.
The bill is centered around the California Dream for All program, a down payment assistance initiative that offers 20% in down payment help, up to $150,000. This assistance comes in the form of a shared appreciation loan, meaning that the homebuyer would only pay interest on the loan based on 15% to 20% of the home’s increase in value upon selling the property. The exact percentage depends on the homebuyer’s income level. While the program has received state funding, it is primarily run by the California Housing Finance Agency, which generates revenue through mortgage loans rather than direct taxpayer funding.
Arambula emphasized that the bill’s eligibility requirements align with those set by the Federal National Mortgage Association, or Fannie Mae. To qualify, applicants must have either a taxpayer identification number or a social security number, indicating that they are taxpayers. “It isn’t given out willy nilly to just anybody,” Democratic Assemblymember Eloise Gómez Reyes said during a June hearing.
The bill is intended to address a federal law that currently prevents undocumented immigrants from participating in state benefits unless a state law specifically provides for their eligibility. Arambula stressed that the proposal should not be conflated with the larger immigration debate. “We simply wanted to be as inclusive as possible within our policies so that all who are paying taxes here in our state were able to qualify,” he told POLITICO. He added that without this bill, many in the immigrant community might face uncertainties and complexities when trying to access homeownership programs.
While the bill has no registered opposition, it could still become a point of political contention as the election approaches. However, it has gained support from the state’s independent housing finance agency. The agency has even reached out to Arambula to suggest expanding the proposal to include all of its programs, not just the Dream for All initiative. This would allow undocumented immigrants access to other loan programs where the state collaborates with private lenders and prospective homebuyers.
At the federal level, Vice President Kamala Harris is pushing a separate Biden administration proposal to provide up to $25,000 in down payment assistance to first-time, first-generation homeowners. However, undocumented immigrants would not be eligible under federal law.
Governor Gavin Newsom has previously taken positions that have frustrated immigrant advocates. Last year, he vetoed a bill that would have prevented state prisons from sharing information about noncitizens with federal officials, arguing that current laws already strike the right balance between law enforcement and community trust. The veto followed an ACLU investigation that accused the state prison system of “anti-immigrant behavior.”